Exchange of Futures for Swaps
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An exchange of futures for swaps (EFS) transaction works similarly to an exchange of futures for physicals (EFP), except that an EFS allows market participants to exchange a position in a futures contract on a commodity for a cash-settled position instead of the physical commodity.
An EFS also gives market participants the ability to liquidate a swaps position in a market that may have limited liquidity, for example the over-the-counter (OTC) swaps market.
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